EUR/USD: Break below 1.0800/1.00730 to hasten a retracement toward 1.05 – SocGen
|The Euro retreated to the bottom spot in the G10 table after the marked selling on Friday. Economists at Société Générale expect EUR/USD to plummet toward 1.05 on a break under 1.0800/1.0730.
Profit-taking looks tactical
“The realignment of EUR/USD with bond spreads has run its course and hedge funds maintain their long position last week at 22.5% of OI, so the profit-taking looks tactical and does not suggest a more fundamental shift is afoot.”
“We can’t ignore the jeopardy of a deeper pullback of course, especially if US retail sales come in strong tomorrow.”
“Confluence of 100-DMA and the trendline going back to September 2022 near 1.0800/1.0730 is crucial support zone. A break would hasten a retracement towards 1.05.”
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